Rolex Essay
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Rolex are world famous for their performance and reliability. They are the largest single luxury watch brand and one of the world’s most powerful global brands. This essay will critically discuss how Rolex positions themselves in the market and how Rolex uses their brand elements and marketing programs to build brand equity.
Positioning is the way a company wants customers to perceive, think and feel about its brand. Rolex positions itself attracting the high level of society and as a consequence finds advertising avenues and promotional events where its target customer participates.
Arriving at the proper position requires establishing the correct points of parity and points of difference association. Points of parity for Rolex are that it is a Swiss watchmaker, durable, fine material, and quality of craftsmanship. These points are essential for customer-based brand equity and achieving brand salience. Without these the brand would not be able to compete against other watchmakers in the market. Points of difference for Rolex are the crown, exclusive imagery, premium price, innovation and distribution. These are crucial for the brand to build brand equity.
While in the concept of positioning a brand’s communication activity is the major area of reference, it is now emphasized that positioning has a broader market impact and refers to a brand’s broadly defined marketing activity. Positioning refers to external activities and it determines behavior within an organization. For Rolex these activities include: offering special products on special events, high professional advertisements, huge public relations and campaigns. These give Rolex an image of superiority, making it a very desirable brand by targeting the desirable consumers.
It is important to define whether a brand is a functional or symbolic one. It has been argued that a brand should be positioned to appeal to either one of these types of needs, but not both. However, Rolex makes on of the exceptions. Functional brands satisfy immediate and practical needs. Rolex is self-winding, water-resistant and durable stainless steel watch, thus fulfilling the functional needs of the customers. On the other hand, the brand has also incorporated the sporty style and sophistication. A Rolex watch is a sign of success and personal accomplishment, thus satisfying the symbolic needs such as self-expression and prestige.